COMBINED SCHEME INFORMATION DOCUMENT DEBT SCHEMES OF KOTAK MAHINDRA MUTUAL FUND

Transcription

1 COMBINED SCHEME INFORMATION DOCUMENT DEBT SCHEMES OF KOTAK MAHINDRA MUTUAL FUND Continuous Offer of units of all schemes available at NAV bases prices Name of Scheme Kotak Mahindra Gilt Unit Scheme - 98 Investment Plan Kotak Mahindra Bond Unit Scheme 99 Kotak Mahindra Liquid Scheme Type of Scheme An open ended dedicated Gilt Scheme An Open Ended Debt Scheme An Open Ended Debt Scheme Scheme Re-opened on January 5, 1999 November 29, 1999 October 6, 2000 Kotak Bond Short Term Plan Kotak Floater Short Term Scheme Kotak Monthly Income Plan Kotak Treasury Advantage fund (Formerly known as Kotak Floater Long Term Scheme) Kotak Flexi Debt Scheme An Open Ended Debt Scheme An Open Ended Debt Scheme An Open Ended Income Scheme An Open Ended Debt Scheme An Open Ended Debt Scheme May 3, 2002 July 15, 2003 December 3, 2003 August 13, 2004 December 6, 2004 Kotak Income Opportunities Fund Kotak Banking and PSU Debt Fund Kotak Low Duration Fund (Formerly known as PineBridge India Short Term Fund) Kotak Corporate Bond Fund (Formerly known as PineBridge India Total Return Bond Fund) An Open Ended Debt Scheme May 12, 2010 An Open Ended Debt Scheme Kotak Mahindra Gilt Savings Scheme 98 Savings Plan has been converted into Kotak Banking and PSU Debt Fund on August 14, An Open Ended Debt Scheme March 7, 2008 An Open Ended Debt Scheme September 24, 2007 Name of Mutual Fund Kotak Mahindra Mutual Fund Name of Asset Management Company Kotak Mahindra Asset Management Company Ltd. CIN: U65991MH1994PLC Name of Trustee Company Address of the Companies Corporate address of the Asset Management Company Website Kotak Mahindra Trustee Company Ltd. CIN: U65990MH1995PLC BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai th Floor, Vinay Bhavya Complex, 159-A, C. S. T. Road, Kalina, Santacruz (E), Mumbai assetmanagement.kotak.com The particulars of the Schemes have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Kotak Mahindra Mutual Fund, Tax and Legal issues and general information on assetmanagement.kotak.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated June 30, 2015.

2 PRODUCT LABELING Scheme Names This product is suitable for investors who are seeking* Riskometer Kotak Mahindra Liquid Scheme Income over a short term investment horizon Investment in debt & money market securities Moderately Low Riskometer Moderate Moderately High Low High Kotak Floater Short Term Scheme Income over a short term investment horizon investment in floating rate securities, debt & money market securities LOW Investors understand that their principal will be at low risk HIGH Kotak Mahindra Gilt Unit Scheme 98 Investment Plan Income over a long investment horizon Investments in sovereign securities issued by the Central and/ or State Government(s) and / or reverse repos in such securities. Riskometer Kotak Mahindra Bond Unit Scheme 99 Income over a long investment horizon Investment in debt & money market securities Moderately Low Moderate Moderately High Kotak Monthly Income Plan Kotak Low Duration Fund (Formerly known as PineBridge India Short Term Fund) Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments Regular income over short term Income by focusing on low duration securities Low LOW Investors understand that their principal will be at moderate risk High HIGH Kotak Bond Short Term Plan Income over a medium term horizon Investment in debt & money market securities Kotak Treasury Advantage fund (Formerly known as Kotak Floater Long Term Scheme) Income over a short term investment horizon Investment in debt & money market securities Riskometer Kotak Flexi Debt Scheme Income over a medium term investment horizon Investment in debt & money market securities Moderately Low Moderate Moderately High Kotak Income Opportunities Fund Income over a medium term investment horizon Investment in debt & money market securities Low High Kotak Banking and PSU Debt Fund Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities LOW Investors understand that their principal will be at moderately low risk HIGH Kotak Corporate Bond Fund (Formerly known as PineBridge India Total Return Bond Fund) Regular income over short term Income by investing in fixed income securities of varying maturities * Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

3 TABLE OF CONTENTS I. HIGHLIGHTS/SUMMARY OF THE SCHEME 2 II. INTRODUCTION 24 A. Risk Factors 24 B. Requirement of minimum investors in the scheme 27 C. Special Considerations 27 D. Definitions 30 E. Due Diligence by the Asset Management Company 32 III. INFORMATION ABOUT THE SCHEME 33 A. Type of Schemes 33 B. Features of the schemes (Investment Objective, Asset Allocation Pattern, Investment Strategy, Benchmark, Risk Mitigation) 33 (i) Kotak Mahindra Gilt Unit Scheme - 98 Investment Plan 33 (ii) Kotak Mahindra Bond Unit Scheme 34 (iii) Kotak Mahindra Liquid Scheme 35 (iv) Kotak Bond Short Term Plan 37 (v) Kotak Floater Short Term Scheme 38 (vi) Kotak Monthly Income Plan 39 (vii) Kotak Treasury Advantage fund 41 (viii) Kotak Flexi Debt Scheme 42 (ix) Kotak Income OpportunitiesFund 44 (x) Kotak Banking and PSU Debt Fund 46 (xi) Kotak Low Duration Fund (Formerly known as PineBridge India Short Term Fund) 47 xii) Kotak Corporate Bond Fund (Formerly known as PineBridge India Total Return Bond Fund) 48 C. Where will the schemes invest? (common to all schemes) 50 D. Fundamental Attributes (common to all schemes) 51 E. Who manages the schemes? 52 F. What are the Investment Restrictions? 53 G. How have the Schemes performed? 54 IV. UNITS AND OFFER 60 A. Ongoing Offer Details 60 B. Periodic Disclosures 73 C. Computation of NAV (common to all schemes) 74 V. FEES AND EXPENSES 75 A. New Fund Offer (NFO) Expenses 75 B. Total Expense Ratio for the schemes 75 C. Load Structure 78 VI. RIGHTS OF UNITHOLDERS 79 VII. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 79 1

4 I. HIGHLIGHTS/ SUMMARY OF THE SCHEME SCHEME Plans Type of Scheme (Structure) Investment Objective Kotak Mahindra Gilt Unit Scheme 98 - Investment Plan Provident Fund Plan & Trust Plan An open ended dedicated Gilt unit scheme To generate risk free returns through investments in Sovereign securities issued by the Central Government and / or State Government and / or reverse repo in such securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Liquidity Open ended. Purchase and redemptions at prices related to applicable NAV Put option available during liquidity window. Benchmark Index I-Sec Composite Index I-Sec Composite Index Transparency/ NAV disclosure The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plans under the scheme Non : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Non : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. Options under each Plan Growth and Dividend (Payout and Reinvestment) the NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Growth and Dividend (Payout and Reinvestment) the NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Default Plan Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Mahindra Gilt Unit Scheme 98 Investment Plan -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Quarterly Quarterly 2

5 Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/STP Frequency SWP Dates STP Dates Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase 20th of March, June, September and December of every year. (If the record date is not a Business Day, the immediately following Business Day will be the record date) Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Available (SWP and STP facility can be availed only during the liquidity Window) 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Minimum Redemption Size In Rupees (Non- SWP/STP) In Units (Non-SWP/STP) In Rupees (SWP/ STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Exit Load Rs. 1000/- 100 units Rs. 1000/- (Subject to a minimum of 6 installments) / Entire Appreciation For Gilt Investment Regular - For : Cheques should be drawn in favor of Gilt Investment Regular - Non : Cheques should be drawn in favor of Gilt Investment Regular - Non Plan Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load Rs. 1000/- 100 units Rs. 1000/- (Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. For Gilt Investment PF & Trust Plan: For : Cheques should be drawn in favor of Gilt Investment Gilt Investment Provident Fund & Trust Plan- : Cheques should be drawn in favor of Gilt Investment Gilt Investment Provident Fund & Trust Plan In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load SCHEME Type of Scheme (Structure) Investment in Suitable for Investment Objective Liquidity Benchmark Index Transparency/ NAV disclosure KOTAK MAHINDRA BOND UNIT SCHEME 99 (Kotak Bond) An open-ended debt scheme A variety of debt and money market instruments Investors who desire to diversify credit risk through a portfolio of a variety of debt instruments. To create a portfolio of debt instruments of different maturities so as to spread the risk across a wide maturity horizon and different kinds of issuers in the debt markets. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL Composite Bond Fund Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. 3

6 Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plans under the scheme Options under each Plan Default Plan Plan A (formerly known as ) Plan A: This Plan is for investors who wish to route their investment through any distributor. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. The portfolio of Plan A and will be unsegregated. Note: Deposit Plan has been discontinued for further subscriptions w.e.f. October 1, Growth and Dividend (Payout and Reinvestment). The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Mahindra Bond Unit Scheme 99 (Kotak Bond) -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular /, the application will be processed as under: Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/STP) In Units (Non-SWP/STP) In Rupees (SWP/STP) Under Plan A and Quarterly Dividend (Payout and Reinvestment) Half Yearly Dividend (Payout and Reinvestment) Annual Dividend (Payout and Reinvestment) Under Deposit Plan Quarterly Dividend (Payout and Reinvestment). 20th of March, June, September and December of every year for the Quarterly Dividend Option. 20th of March and September of every year for the Half Yearly Dividend Option. Dividends may also be declared between the Half Yearly periods, subject to availability and adequacy of distributable surplus, and subject to the discretion of the Trustees. 12th of March for the Annual Dividend Option Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Fixed Sum or Entire Appreciation Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Rs. 1000/-(Subject to a minimum of 6 installments) / Entire Appreciation Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Any Business Day 4

7 Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Exit Load For existing investors under Deposit Plan If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For : Cheques should be drawn in favor of Kotak Bond - For Plan A: Cheques should be drawn in favor of Kotak Bond - Plan A In terms of SEBI Circular No. SEBI/ IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. NIL 1. W.e.f October 1, 2012, there shall be no fresh subscriptions under the Deposit Plan. Further, the, has been renamed as Plan A. 2. All existing SIP/STP falling due from November 1, 2012 under the options in Deposit Plan will be processed in the same options under Plan A. 3. If subscriptions / switch request is received under an option in the Deposit Plan, the same will be processed under the same option, if any, in Plan A. 4. Where the investor has units in both the Deposit Plan and Plan A at the time of redemption / switch the investor must submit separate redemption / switch request. 5

8 SCHEME Type of Scheme (Structure) Investment Objective An open-ended debt scheme Kotak Bond Short Term Plan The investment objective of the Scheme is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market instruments such as treasury bills, commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The Scheme may invest in the call money/term money market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the Scheme may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the Scheme may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the Scheme and the prevailing guidelines and Regulations. There is no assurance that the investment objective of the Scheme will be realised. Liquidity Benchmark Index Transparency/ NAV Disclosure Plans under the scheme Options under each Plan Open-ended. Purchases and Redemptions at prices related to Applicable NAV. CRISIL Short Term Bond Fund Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. Growth and Dividend (Payout and Reinvestment) the NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Default Plan Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Bond Short Term Plan -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Monthly Dividend (Payout and Reinvestment) Half Yearly Dividend (Payout and Reinvestment) Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. 6

9 Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/ STP) In Units (Non-SWP/ STP) In Rupees (SWP/ STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour 12th of every Month 20th of March and September of every year for the Half Yearly Dividend Option. Dividends may also be declared between the Half Yearly periods, subject to availability and adequacy of distributable surplus, and subject to the discretion of the Trustees. Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation For Growth and Monthly Dividend Reinvestment Option: Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches For Monthly Dividend Payout Option: Rs. 50,000/- and above. Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Rs. 1000/-(Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For : Cheques should be drawn in favor of Kotak Bond Short Term - For : Cheques should be drawn in favor of Kotak Bond Short Term - Loads Entry Load In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Exit Load For redemptions / switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment 0.25% For redemptions / switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment NIL Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. 7

10 SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV disclosure Plans under the scheme Options under each Plan Default Plan Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities An open-ended Debt Scheme KOTAK MAHINDRA LIQUID UNIT SCHEME (KOTAK LIQUID) To provide reasonable returns and high level of liquidity by investing in Debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the Debt Markets. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL Liquid Fund Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plan A (formerly known as Institutional Premium Plan) Plan A: This Plan is for investors who wish to route their investment through any distributor. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. The portfolio of Plan A and will be unsegregated. Note:- and Institutional Plans have been discontinued for further subscriptions w.e.f. October 1, 2012 Growth and Dividend (Payout and Reinvestment) the NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Mahindra Liquid Unit Scheme (Kotak Liquid) -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Under Plan A and Daily Dividend Reinvestment W e e k l y D i v i d e n d ( P a y o u t # a n d Reinvestment) # In case the amount of dividend in Weekly Dividend Payout Option is less than Rs. 5000/-, the same shall be reinvested. For Daily Dividend Option Every day for which NAV is declared. For Weekly Dividend Option Every Monday SIP facility is not available SWP / STP/DTP facilities are available Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Under erstwhile Weekly Dividend Reinvestment Under erstwhile Institutional Plan Daily Dividend Reinvestment Weekly Dividend Reinvestment 8

11 SIP Frequency & Dates - SWP/ STP Frequency SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase Additional Purchase SIP Purchase Minimum Redemption Size In Rupees Cheques/ Drafts to favour Loads Entry Load Exit Load Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Not applicable Rs. 1000/- In Units 100 units Minimum balance to be If the holding is less than Rs. 1000, after processing the redemption request, the entire amount/units maintained and consequences will be redeemed from the Scheme. of non maintenance. For Plan A: Cheques should be drawn in favor of Kotak Liquid - Plan A For : Cheques should be drawn in favor of Kotak Liquid - In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. For existing investors under R e g u l a r P l a n a n d Institutional Plan 1. W.e.f October 1, 2012, there shall be no fresh subscriptions under the Regular and Institutional Plans. Further, the Institutional Premium Plan, has been renamed as Plan A. 2. If subscriptions / switch request is received under an option in the or Institutional Plan, the same will be processed under the same option, if any, in Plan A. 3. Where the investor has units in both the and Plan A at the time of redemption / switch the investor must submit separate redemption / switch request. 4. Where the investor has units in both the Institutional Plan and Plan A at the time of redemption / switch the investor must submit separate redemption / switch request. SCHEME Type of Scheme (Structure) Investment Objective KOTAK FLOATER SHORT TERM SCHEME An open-ended Debt Scheme To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Liquidity Benchmark Index Transparency/ NAV disclosure Plans under the scheme Options under each Plan Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL Liquid Fund Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of and will be unsegregated. Growth and Dividend Reinvestment. The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. 9

12 Default Plan Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Floater Short Term Scheme -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase Daily Dividend Reinvestment Weekly Dividend Reinvestment Monthly Dividend Reinvestment For Daily Dividend Option Every day for which NAV is declared. For Weekly Dividend Option Every Monday For Monthly Dividend Option - 12th of every Month SIP facility is not available SWP / STP/ DTP facilities are available - Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation For Growth, Weekly Dividend and Monthly Dividend Options: Rs and in multiples of Re. 1 for purchases and for Re 0.01 for switches For Daily Dividend Option: Rs. 1,00,000/- and in multiples of Re. 1 for purchases and for Re 0.01 for switches Additional Purchase Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches SIP Purchase Minimum Redemption Size In Rupees Cheques/ Drafts to favour Loads Entry Load Not applicable Rs. 1000/- In Units 100 units Minimum balance to be If the holding is less than Rs. 1000, after processing the redemption request, the entire amount/units maintained and consequences will be redeemed from the Scheme. of non maintenance. For : Cheques should be drawn in favor of Kotak Floater Short Term - For : Cheques should be drawn in favor of Kotak Floater Short Term - Regular Plan In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Exit Load Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. 10

13 SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV disclosure Options under each Plan KOTAK MONTHLY INCOME PLAN An open-ended Income Scheme (Monthly Income is not assured & is subject to availability of distributable surplus) To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL MIP Blended Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plans under the scheme : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. Default Plan Growth and Dividend (Payout and Reinvestment). The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Monthly Income Plan -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency SWP Dates STP Dates Monthly Dividend (Payout and Reinvestment) Quarterly Dividend (Payout and Reinvestment) For Monthly Dividend - 12th of every Month 20th of March, June, September and December of every year, for quarterly dividend Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day 11

14 SWP/ STP Minimum Investment size Initial Purchase (Non- SIP) Fixed Sum or Entire Appreciation For Growth, Monthly Dividend Reinvestment, Quarterly Dividend Option: Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches. For Monthly Dividend Payout Option: Rs. 50,000/- and above. Additional Purchase (Non- SIP) Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/STP) In Units (Non-SWP/STP) In Rupees (SWP/STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Rs. 1000/-(Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For : Cheques should be drawn in favor of Kotak Monthly Income - For : Cheques should be drawn in favor of Kotak Monthly Income - Regular Plan In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Exit Load For redemptions / switch outs (including SIP/STP) within 3 years from the date of allotment of units, irrespective of the amount of investment: 1% For redemption/switch outs (including SIP/STP) after 3 years from the date of allotment of units, irrespective of the amount of investment: Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. 12

15 SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV disclosure KOTAK TREASURY ADVANTAGE FUND (Formerly known as Kotak Floater Long Term Scheme) An open-ended debt scheme The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV Crisil Liquid Fund Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plans under the scheme : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. Options under each Plan Growth and Dividend Reinvestment. The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Default Plan Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Treasury Advantage Fund -. Investors should also indicate in the ARN column of the application form. If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency Daily Dividend Reinvestment, Weekly Dividend (Payout and Reinvestment) Monthly Dividend Reinvestment For Daily Dividend Option Every day for which NAV is declared. For Weekly Dividend Option Every Monday For Monthly Dividend Option - 12th of every Month Available Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. 13

16 SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/STP) In Units (Non-SWP/STP) In Rupees (SWP/STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Exit Load 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation For Growth, Daily Dividend Reinvestment, Weekly Dividend and Monthly Dividend Reinvestment Option: Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches For Weekly Dividend Payout Option: Rs. 1,00,00,000/- and above Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Rs. 1000/-(Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For : Cheques should be drawn in favor of Kotak Treasury Advantage fund - Plan For : Cheques should be drawn in favor of Kotak Treasury Advantage fund - In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. NIL. Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. 14

17 SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV Disclosure Plans under the scheme Options under each Plan Default Plan An open-ended debt scheme KOTAK FLEXI DEBT SCHEME The investment objective of the Scheme is to maximise returns through an active management of a portfolio of debt and money market securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL Composite Bond Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plan A (formerly known as Institutional Plan) Plan A: This Plan is for investors who wish to route their investment through any distributor. : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. The portfolio of Plan A and will be unsegregated. Note: has been discontinued for further subscriptions w.e.f. October 1, Growth and Dividend Reinvestment. The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Flexi Debt Scheme -. Investors should also indicate in the ARN column of the application form. Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned For Plan A and Daily Dividend reinvestment Weekly Dividend reinvestment Quarterly Dividend (Payout & Reinvestment) For erstwhile Daily Dividend Reinvestment Weekly Dividend Reinvestment Quarterly Dividend (Payout & Reinvestment) Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) DTP Facility Daily Dividend Reinvestment Option: - Every day for which NAV is declared Weekly Dividend Reinvestment Option: - Every Monday of every week Quarterly Dividend (Payout & Reinvestment Option): - 20th of March, June, September and December of every year Available 15

18 SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/STP Frequency SWP Dates STP Dates SWP/STP Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/ STP) In Units (Non-SWP/ STP) In Rupees (SWP/ STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Exit Load For existing investors under Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Rs. 1000/-(Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For Plan A: Cheques should be drawn in favor of Kotak Flexi Debt - Plan A For : Cheques should be drawn in favor of Kotak Flexi Debt - In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. For redemptions / switch outs (including SIP/STP) within 180 days from the date of allotment of units, irrespective of the amount of investment 1.00% For redemptions / switch outs (including SIP/STP) after 180 days from the date of allotment of units, irrespective of the amount of investment NIL Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. 1. W.e.f October 1, 2012, there shall be no fresh subscriptions under the. Further, the Institutional Plan, has been renamed as Plan A. 2. All existing SIP/STP falling due from November 1, 2012 under the options in will be processed in the same options under Plan A. 3. If subscriptions / switch request is received under an option in the, the same will be processed under the same option, if any, in Plan A. 4. Where the investor has units in both the and Plan A at the time of redemption / switch the investor must submit separate redemption / switch request. 16

19 SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV Disclosure Plans under the scheme Options under each Plan Default Plan An open-ended debt scheme KOTAK INCOME OPPORTUNITIES FUND The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that or guarantee that the investment objective of the scheme will be achieved. Open ended. Purchase and redemptions at prices related to applicable NAV CRISIL Short Term Bond Index The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFI's website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be published in two newspapers. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Schemes shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. The Scheme offers two Plans : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of and will be unsegregated. Growth and Dividend (Payout and Reinvestment). The NAVs of the above options will be different and separately declared; the portfolio of the investments remaining the same. Investors subscribing under of the Scheme will have to indicate against the Scheme name in the application form - Kotak Income Opportunities Fund -. Investors should also indicate in the ARN column of the application form. Dividend Frequency (Dividend is declared subject to availability and adequacy of distributable surplus) If the application is received incomplete with respect to not selecting Regular/, the application will be processed as under: Scenario Broker Code mentioned by the investor Mentioned Mentioned Mentioned Option Facility Frequency Growth Nil Nil Payout Weekly Monthly Quarterly Dividend Annual Reinvestment Weekly Monthly Quarterly Annual Plan mentioned by the investor Regular Not Mentioned Regular Regular Not Mentioned Default Plan to be captured In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under from the date of application without any exit load. If the Record date is not a Business Day, the immediately following Business Day will be the record date. Under the Dividend option, the Trustee may at any time decide to distribute by way of dividend, the surplus by way of realised profit and interest, net of losses, expenses and taxes, if any, to Unitholders if, in the opinion of the Trustee, such surplus is available and adequate for distribution. The Trustee's decision with regard to such availability and adequacy of surplus, rate, timing and frequency of distribution shall be final. The Trustee may or may not distribute surplus, even if available, by way of dividend. 17

20 Dividend Record Dates (If the Record date is not a Business Day, the immediately following Business Day will be the record date) SIP/SWP/STP/DTP Facilities SIP Frequency & Dates SWP/ STP Frequency SWP Dates STP Dates SWP/ STP Minimum Investment size Initial Purchase (Non- SIP) Additional Purchase (Non- SIP) SIP Purchase Minimum Redemption Size In Rupees (Non- SWP/ STP) In Units (Non-SWP/ STP) In Rupees (SWP/ STP) Minimum balance to be maintained and consequences of non maintenance. Cheques/ Drafts to favour Loads Entry Load Exit Load Growth Nil Dividend Option (Payout and Reinvestment)» Weekly Every Monday» Monthly - 12th of every Month» Quarterly - 20th of March, June, September and December of every year» Annual - 12th of March Available 1st, 7th, 14th, 21st and 25th of the Month/ Quarter Weekly (Only for STP), Monthly and Quarterly 1st, 7th, 14th, 21st and 25th Any Business Day Fixed Sum or Entire Appreciation Rs. 5000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- and in multiples of Re. 1 for purchases and of Re for switches Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each) Rs. 1000/- 100 units Rs. 1000/- (Subject to a minimum of 6 installments) / Entire Appreciation If the holding is less than Rs or 100 units, after processing the redemption request, the entire amount/units will be redeemed from the Scheme. For : Cheques should be drawn in favor of Kotak Income Opportunities - For : Cheques should be drawn in favor of Kotak Income Opportunities - Regular Plan In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / additional purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. For redemptions/switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 2%. For redemptions/ switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. SCHEME Type of Scheme (Structure) Investment Objective Liquidity Benchmark Index Transparency/ NAV disclosure An Open Ended Debt Scheme To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. There is no assurance that or guarantee that the investment objective of the scheme will be achieved. Open Ended. Purchases and Redemptions at prices related to Applicable NAV. CRISIL Liquid Fund Index Kotak Banking and PSU Debt Fund The Mutual Fund shall update the Net asset value of the scheme on every business day on AMFIs website by 9:00 p.m. The NAVs shall also be updated on the website of the Mutual Fund assetmanagement.kotak.com and will be released in two newspapers for publication. Delay in uploading of NAV beyond 9.00 p.m. on every business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. The monthly portfolio of the Scheme shall be available in a user-friendly and downloadable format on the website viz. assetmanagement.kotak.com on or before the tenth day of succeeding month. Plans under the scheme : This Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. : This Plan is for investors who wish to route their investment through any distributor. The portfolio of both plans will be unsegregated. 18